Weekly
Update

(18
- 24 May 2002)

While remaining well below the expected
average of 2.2 – 2.1 million barrels per day, Iraqi oil exports under the
United Nations oil-for-food programme gathered pace, totaling 9 million
barrels in the week 18 – 24 May.The
week’s exports generated an estimated €220 million (euros) or $205 million
in revenue, at current prices and rate of exchange, raising the overall
estimated revenue in current phase XI of the programme to €4.74 billion or
$4.36 billion.

Of the six loadings during the week in
review, four took place from Mina al-Bakr, with 7 million barrels of oil, and
two from Ceyhan, with 2 million barrels.The average price of Iraqi crude oil was, approximately, €24.55 or
$22.65 per barrel.

There are now 158 approved oil
purchase contracts in phase XI, including one new contract approved by the
United Nations oil overseers in the course of the week.The quantity of oil approved for export under these contracts amounts
to 374 million barrels, of which 214 million barrels are for Basrah Light and
160 million barrels for Kirkuk crude.Iraq,
so far in this phase, has exported 223 million barrels of oil out of the
approved amount of 374 million barrels.Phase
XI ends on 29 May 2002.

Since
the beginning of the programme on 10 December 1996, Iraqi oil exports of more
than 3 billion barrels of oil have netted an estimated $38.6 billion and €17.4
billion ($15.3 billion) in revenue.The
humanitarian programme receives 72 per cent of the oil proceeds, with 59 per
cent allocated to the 15 central and southern governorates and 13 per cent to
the three northern governorates.

Owing
to a funding shortfall in the current phase, some 678 humanitarian supply
contracts, worth over $1.7 billion, while approved by the United Nations, lack
funding and cannot be further processed.

To
date, some $34.8 billion worth of contracts for the purchase of various
humanitarian supplies and equipment have been both approved by the Security
Council’s 661 sanctions committee and “fast-tracked” by the Office of
the Iraq Programme (OIP), including $3.1 billion worth of oil industry spare
parts and equipment.Over $22.2
billion worth of supplies and equipment have been delivered to Iraq, including
$1.4 billion worth oil spare parts and equipment, while another $10.7
billion worth of supplies and equipment, for which funds have been available,
are in the production and delivery pipeline, including $1.7 billion worth of
oil industry equipment.

Currently
there are 2,160 humanitarian supply and equipment purchase contracts, valued
at $5.3 billion, that have been placed on hold by the 661 Committee, including
35 new contracts, worth $116 million, put on hold in the course of this week.The Committee released from hold 16 contracts, worth $30 million.The “holds” cover 1,469 humanitarian supply contracts, worth about
$4.56 billion, and 691 contracts, worth $741 million, for oil industry spare
parts and equipment.

Paragraph 18 of the new set of procedures
for the processing and review of contracts for humanitarian supplies and
equipment under Security Council resolution 1409 (2002) requires that
contracts currently on hold be divided into two categories.The first category would comprise contracts that contain “dual use”
item(s), as determined by the United Nations Secretariat experts, which will
be returned to the submitting Mission or United Nations agency for possible
re-submission under the new procedures.The
second category would include all other contracts currently on hold and will
be re-circulated by OIP under the new procedures.It is foreseen that upon the completion of these processes, there will
no longer be contracts on hold.